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cash
using cash reserves to pay for day-to-day business expenditure
Bank overdraft
account holder can withdraw more money from their current account than they have in it. Must be arranged in advance
Accrued Expense
business has the use of certain expenses for up to two months before payment is required, e.g. electricity, phone, broadband
Trade Creditor
suppliers may provide up to 60 days credit
Credit Card
allows the card holder to buy now and pay later
Invoice Discounting
allows the business to borrow money against its outstanding sales invoice.
Factoring
selling money owed by debtors to a factoring company to get immediate payment
Leasing
renting an asset over a number of years.
Hire Purchase
: the purchaser pays an initial deposit and a finance company pays the balance to the seller. Ownership is transferred to the buyer when the last payment is mad
Medium-term Loan
accessible from banks and credit unions. Borrowers make fixed repayments (which cover repayment of the loan plus interest) over an agreed time period, between o
Share Capital
money invested into a business by its owners (shareholders)
Venture Capital
venture capitalists invest in new or high risk businesses
Retained Profit
portion of the annual profits reinvested in the business
Grants
money provided by the government, local authority or EU
Sale and Leaseback
selling an asset, e.g. premises to an investor and leasing it back from the new owner
Debentures
long-term loan with a fixed interest rate and specific repayment date
